Use a Eviews software to develop the residual diagnostic on: 1) Autocorrelation (Topic 6) a) Explain what is Autocorrelation b) Explain how to remove the Autocorrelation c) Report the result on Durbin Watson test before and after consider the lag dependent variable d) Report the result on Breusch-Godfrey Serial Correlation LM test before and after consider the lag dependent variable e) Interpret the result year 1975 PE 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ΤΑ LOANST. LLRGL y= PE=Profit Efficiency 14.6083 176.0456 x1= TA=Total Assets x2= LOANSTA=Total Loans/Total Assets x3= LLRGL=Loan Loss/Gross Loans 420349085.2058 23752685573 515751718.6357 29872885765 14.4000 164.4431 569998041.4345 34397351941 14.1083 160.6767 650383427.0555 38580674565 13.9417 154.2825 775397824.1686 47275229189 14.4000 188.8885 911068580.4969 54285451269 15.1292 182.3402 995369176.2747 58669387781 18.5775 182.8961 1094416085.6349 63726444549 18.6500 193.7585 1229626167.5562 71223435269 16.9208 202.3701 1376305094.8818 81008525317 18.4000 209.7825 1506165178.0215 78890483717 17.7125 198.4068 1689270480.0032 72906743813 15.9833 168.2037 1721535847.5530 81084997637 11.9000 159.9796 1822714668.5714 92370001925 12.1917 146.9205 2159877464.4902 1.05233E+11 13.4617 144.4656 1184185086.3221 1.19081E+11 15.7208 140.5389 1326240195.3037 1.35123E+11 17.1108 136.8990 2176221980.0836 1.50682E+11 17.9350 145.2697 2655996806.3182 1.72193E+11 17.0258 146.1081 2855298414.1580 1.9546E+11 14.8925 141.8731 3271374740.0984 2.22472E+11 15.9333 142.0873 3745417388.9739 2.53733E+11 17.0850 146.9131 4233305043.7576 2.81795E+11 17.7767 142.3239 4030596699.2382 2.83243E+11 18.5133 116.2141 4397559524.5733 3.00764E+11 14.1242 117.1333 4766266170.7764 3.56401E+11 13.3625 118.4800 5246532567.2924 3.52579E+11 13.3742 123.6749 5384444478.9634 3.83213E+11 12.3050 120.7874 5791471524.2249 4.18769E+11 12.1667 114.7158 6428620155.0125 4.74048E+11 12.1000 110.0742 6792774753.9964 5.22445E+11 12.1017 110.0000 7449816961.3290 5.74441E+11 12.2492 113.4275 7880270460.5969 6.42049E+11 12.2658 115.5333 8261026018.9191 7.4247E+11 12.2258 116.1558 8848807655.7209 6.79938E+11 11.1817 113.1616 9339289365.3753 7.65965E+11 11.6025 118.8233 10374514441.8547 8.52734E+11 11.5030 119.1908 1721535851.5530 81084997638 11.0000 156.9796 1822714672.5714 92370001926 11.2917 143.9205 2159877468.4902 1.05233E+11 12.5617 141.4656

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 5E
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Question
Use a Eviews software to develop the residual diagnostic on:
1) Autocorrelation (Topic 6)
a) Explain what is Autocorrelation
b) Explain how to remove the Autocorrelation
c) Report the result on Durbin Watson test before and after consider the lag dependent
variable
d) Report the result on Breusch-Godfrey Serial Correlation LM test before and after
consider the lag dependent variable
e) Interpret the result
Transcribed Image Text:Use a Eviews software to develop the residual diagnostic on: 1) Autocorrelation (Topic 6) a) Explain what is Autocorrelation b) Explain how to remove the Autocorrelation c) Report the result on Durbin Watson test before and after consider the lag dependent variable d) Report the result on Breusch-Godfrey Serial Correlation LM test before and after consider the lag dependent variable e) Interpret the result
year
1975
PE
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
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1988
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1990
1991
1992
1993
1994
1995
1996
1997
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2001
2002
2003
2004
2005
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2007
2008
2009
2010
2011
2012
2013
2014
ΤΑ
LOANST. LLRGL
y=
PE=Profit Efficiency
14.6083 176.0456
x1=
TA=Total Assets
x2=
LOANSTA=Total Loans/Total Assets
x3=
LLRGL=Loan Loss/Gross Loans
420349085.2058 23752685573
515751718.6357 29872885765 14.4000 164.4431
569998041.4345 34397351941 14.1083 160.6767
650383427.0555 38580674565 13.9417 154.2825
775397824.1686 47275229189 14.4000 188.8885
911068580.4969 54285451269 15.1292 182.3402
995369176.2747 58669387781 18.5775 182.8961
1094416085.6349 63726444549 18.6500 193.7585
1229626167.5562 71223435269 16.9208 202.3701
1376305094.8818 81008525317 18.4000 209.7825
1506165178.0215 78890483717 17.7125 198.4068
1689270480.0032 72906743813 15.9833 168.2037
1721535847.5530 81084997637 11.9000 159.9796
1822714668.5714 92370001925 12.1917 146.9205
2159877464.4902 1.05233E+11 13.4617 144.4656
1184185086.3221 1.19081E+11 15.7208 140.5389
1326240195.3037 1.35123E+11 17.1108 136.8990
2176221980.0836 1.50682E+11 17.9350 145.2697
2655996806.3182 1.72193E+11 17.0258 146.1081
2855298414.1580 1.9546E+11 14.8925 141.8731
3271374740.0984 2.22472E+11 15.9333 142.0873
3745417388.9739 2.53733E+11 17.0850 146.9131
4233305043.7576 2.81795E+11 17.7767 142.3239
4030596699.2382 2.83243E+11 18.5133 116.2141
4397559524.5733 3.00764E+11 14.1242 117.1333
4766266170.7764 3.56401E+11 13.3625 118.4800
5246532567.2924 3.52579E+11 13.3742 123.6749
5384444478.9634 3.83213E+11 12.3050 120.7874
5791471524.2249 4.18769E+11 12.1667 114.7158
6428620155.0125 4.74048E+11 12.1000 110.0742
6792774753.9964 5.22445E+11 12.1017 110.0000
7449816961.3290 5.74441E+11 12.2492 113.4275
7880270460.5969 6.42049E+11 12.2658 115.5333
8261026018.9191 7.4247E+11 12.2258 116.1558
8848807655.7209 6.79938E+11 11.1817 113.1616
9339289365.3753 7.65965E+11 11.6025 118.8233
10374514441.8547 8.52734E+11 11.5030 119.1908
1721535851.5530 81084997638 11.0000 156.9796
1822714672.5714 92370001926 11.2917 143.9205
2159877468.4902 1.05233E+11 12.5617 141.4656
Transcribed Image Text:year 1975 PE 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ΤΑ LOANST. LLRGL y= PE=Profit Efficiency 14.6083 176.0456 x1= TA=Total Assets x2= LOANSTA=Total Loans/Total Assets x3= LLRGL=Loan Loss/Gross Loans 420349085.2058 23752685573 515751718.6357 29872885765 14.4000 164.4431 569998041.4345 34397351941 14.1083 160.6767 650383427.0555 38580674565 13.9417 154.2825 775397824.1686 47275229189 14.4000 188.8885 911068580.4969 54285451269 15.1292 182.3402 995369176.2747 58669387781 18.5775 182.8961 1094416085.6349 63726444549 18.6500 193.7585 1229626167.5562 71223435269 16.9208 202.3701 1376305094.8818 81008525317 18.4000 209.7825 1506165178.0215 78890483717 17.7125 198.4068 1689270480.0032 72906743813 15.9833 168.2037 1721535847.5530 81084997637 11.9000 159.9796 1822714668.5714 92370001925 12.1917 146.9205 2159877464.4902 1.05233E+11 13.4617 144.4656 1184185086.3221 1.19081E+11 15.7208 140.5389 1326240195.3037 1.35123E+11 17.1108 136.8990 2176221980.0836 1.50682E+11 17.9350 145.2697 2655996806.3182 1.72193E+11 17.0258 146.1081 2855298414.1580 1.9546E+11 14.8925 141.8731 3271374740.0984 2.22472E+11 15.9333 142.0873 3745417388.9739 2.53733E+11 17.0850 146.9131 4233305043.7576 2.81795E+11 17.7767 142.3239 4030596699.2382 2.83243E+11 18.5133 116.2141 4397559524.5733 3.00764E+11 14.1242 117.1333 4766266170.7764 3.56401E+11 13.3625 118.4800 5246532567.2924 3.52579E+11 13.3742 123.6749 5384444478.9634 3.83213E+11 12.3050 120.7874 5791471524.2249 4.18769E+11 12.1667 114.7158 6428620155.0125 4.74048E+11 12.1000 110.0742 6792774753.9964 5.22445E+11 12.1017 110.0000 7449816961.3290 5.74441E+11 12.2492 113.4275 7880270460.5969 6.42049E+11 12.2658 115.5333 8261026018.9191 7.4247E+11 12.2258 116.1558 8848807655.7209 6.79938E+11 11.1817 113.1616 9339289365.3753 7.65965E+11 11.6025 118.8233 10374514441.8547 8.52734E+11 11.5030 119.1908 1721535851.5530 81084997638 11.0000 156.9796 1822714672.5714 92370001926 11.2917 143.9205 2159877468.4902 1.05233E+11 12.5617 141.4656
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